Motorsport Games (MSGM) Conference Transcript

Summary of Motorsport Games (MSGM) Conference Call - August 20, 2025 Company Overview - Company: Motorsport Games (MSGM) focuses on creating video games, primarily in the racing and simulation segments, predominantly for the PC platform [2][3] - Staff: The company has approximately 41 employees, with 32 developers, positioning itself as a boutique racing game developer [4] Core Products and Services - Main Title: "Le Mans Ultimate" is the flagship game, officially licensed and based on the famous Le Mans 24-hour race, featuring various categories of cars [6][7][10] - Game Features: The game allows players to race together, share cars, and participate in competitions, enhancing the multiplayer experience [9][10] - Sales Performance: The base game has sold over 240,000 units, and the company has seen significant player engagement and interest in updates [11][12] Financial Performance - Recent Financials: - Q2 2025 reported net income of $4.2 million, with revenues 37% higher than the same period the previous year [26] - Earnings per share for Q2 2025 was 82¢, up from 33¢ in Q1 2025 [26] - Adjusted EBITDA for Q2 2025 was $3.7 million, marking the first quarter with income from operations [26] - Cost Management: The company has implemented cost-cutting measures, reducing monthly cash burn to less than $100,000, significantly lower than previous years [27][45] Market Insights - Industry Growth: The racing games market was valued at over $5 billion in 2024 and is expected to grow to $6.9 billion by 2032, with the racing simulator market forecasted to grow at 15.6% [30][31] - Competitor Activity: Codemasters was acquired by EA for $1.2 billion, indicating strong interest in the racing game segment [31] Future Opportunities - Expansion Plans: The company aims to port "Le Mans Ultimate" to gaming consoles (Xbox and PlayStation) to reach a larger audience, with a timeline of 12 to 18 months for this transition [33][34] - New Titles and Features: Plans to develop new titles and enhance existing ones, leveraging technology from "R Factor 2" and exploring partnerships with Liberty Media [34][35] Community Engagement - User Community Relationship: The company has worked to improve its reputation and relationship with the gaming community, receiving positive feedback and support from players and influencers [54][56] Conclusion - Outlook: The company is optimistic about its product offerings and financial performance, with a focus on continuous updates and community engagement to drive future growth [49][50]